- Tron Inc. to launch with $210 million in TRX token reserves
- SRM shares surge over 300% after Tron merger announcement
- SEC fraud case against Sun remains paused amid merger plans
Justin Sun’s crypto firm, Tron Group, is about to go public via a reverse merger with SRM Entertainment. This comes just four months after the SEC paused its case against Sun, which points to a strategic market re-entry. Upon listing, the new firm will be rebranded as Tron Inc. and start operations as a token-holding company.
Tron Inc. intends to replicate MicroStrategy’s plan to acquire and hold TRX as one of its main treasury assets. It will start its operations with $210 million in token reserves that will consist of newly issued or acquired TRX tokens. The company will not go through the conventional IPO process but instead merge with SRM, a Nasdaq listed entertainment company.
Tron and SRM to Rebrand to Tron Inc
SRM Entertainment confirmed the deal and disclosed that Tron’s entry will include a private investment worth $100 million, with potential to rise to $210 million. The funds will be used to acquire Tron tokens, though the source of capital has not been confirmed. Market observers suspect Tron Group is the source of funding behind the private investment.
The merger will also see SRM rebranded to Tron Inc., which reflects the new focus towards blockchain and tokenized reserves. It was facilitated by Dominari Securities, a Trump-linked boutique investment company.
Justin Sun Increases Connection to Trump-affiliated Ventures
Although initial reports said that Eric Trump held a leadership position in Tron Inc, he has rejected any public association with it. However, the Trump connection is still evident because Tron Group has increased its ties with Trump-affiliated projects.
Earlier this year, Justin Sun upped his investment in World Liberty Financial to $75 million, which enhanced its minting power of the USDD1 stablecoin on the Tron blockchain. Moreover, the Trump-themed TRUMP memecoin experienced a 3,000% price increase after an event that Sun attended.
SRM and TRX Price Action
The SRM Entertainment’s stock increased more than 300% after the announcement to reach $6.70 in pre-market trading, up from the previous close of $1.45. TRX also rose by almost 4% to $0.28, which indicated strong investor interest in the deal. This response shows investors are confident in Tron’s long-term asset accumulation model and IPO plans.
IPO Waves Continues Amid Hiatus on Sun’s Case
The merger is part of the larger trend of crypto companies that seek public exposure through alternative listings. Circle recently went public while Gemini has filed its own S-1 registration. Tron’s IPO plans adds to the wave of institutional adoption of blockchain-based treasuries.
Sun, a Chinese-born businessperson and the current advisor to the new company, is still under investigation by the SEC. His civil fraud case has been put on hold as talks continue. There is no confirmation of a possible settlement by regulators .